Since insurance behemoth Life Insurance Corporation of India's (LIC) focus is on profitable market share and not the market share per se, the company will focus on profitable growth in market share, said chairperson Siddhartha Mohanty while speaking to CNBC-TV18 on Thursday. Last year, the LIC chairperson said that the company has shown a growth of 16.67 percent. Going forward, the company will definitely focus on profitable growth in market share, Mohanty noted.

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"So, profitable market share means we have to redesign certain products. Certain products we have redesigned, revamped, we enhance their sum assured, so, obviously premium will increase because they had the high attrition. So that affected because when you redesign something that affects the normal market. So, for that some hit was there, and premium also marginal dip is there from 63.25 percent to 62.58 percent," the LIC chairperson said.

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While replying to a query on whether the insurer is looking to cut its stake in some of Adani Group firms, Mohanty said, "We do not talk of any individual stock as the largest investor in the country, we see the portfolio as a whole. What is our investment policy and how much we earn for our policyholders what is the total yield at the end of the year — not from particular stock. So, holistically we view and when time comes our investment teams are there, they look into all other stocks. So, at that time, whatever proposal comes, they may take a call depending upon all other factors."

LIC to maintain current growth rate for EV

Mohanty also said that the state-run insurer will also maintain its current growth rate for Embedded Value (EV). LIC's EV, which was pegged at about Rs 5.4 lakh crore as on September 30, 2021, is Rs 5.82 lakh crore now and the company has shown a growth rate of 7.59 percent year-on-year, he said.

The Embedded Value (EV) is a measure of the consolidated value of shareholders' interest in the life insurance business. It represents the present value of shareholders' interests in the earnings distributable from the assets allocated to the business after sufficient allowance for the aggregate risks in the business.

While speaking about the company's March quarter (Q4FY23) results and FY24 growth outlook, the LIC chairperson also added that the company is focusing on tech integration as well.

LIC's Q4 PAT jumps multifold

LIC posted a standalone net profit of Rs 13,428 crore for the fourth quarter ended March 2023. The profit rose 466 percent from Rs 2,371 crore in the same quarter of last year. The board has also recommended a final dividend of Rs 3 per equity share with face value of Rs 10 each for the year ended March.

The insurer's net premium income fell 8 percent to Rs 1.31 lakh crore during the March quarter, compared with Rs 1.43 lakh crore in the corresponding quarter of previous year.

LIC's first year premium during the reporting quarter stood at Rs 12,811 crore, down 12% from Rs 14,614 crore in the year-ago quarter.

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Income from investments rose marginally to Rs 67,846 crore for the January-March period versus Rs 67498 crore in the same period last year.

(Edited by : Pradeep John)